Are British nationals aware of frauds enabled by AI? What to do if you have been scammed

In an increasingly modern society, our reliance on technological advancement has become extreme. Particularly with the popularity and the rise of artificial intelligence (AI) and all it’s applications, will mean the dependence will inevitably increase. A recent study found that only 5% of respondents were unfamiliar with AI, while 46% of those under 35 actively used programmes such as Chat GPT.

For example, the images below were created with a prompt describing a lawyer who has just won their case.

Yet, this innovative technology is frequently being utilised with malicious intent. Many British people remain blissfully unaware of the AI integration into fraudulent activities. What was once the realm of basic phishing emails and suspicious phone calls has now transformed into a far more sophisticated arena where AI algorithms are employed to craft convincing scams, without the need to engage individuals to assist.

When asked, 48% of respondents were unable to identify a photo of a real human compared to images created using artificial intelligence software.

Are you aware of any scams or frauds that have used AI technology?

Scammers are utilising this lack of knowledge, including more AI software to facilitate their fraudulent behaviour. To combat this issue, our guide will explore how artificial intelligence is used, what you should do if you believe you have been victim to a scam, and how expert lawyers can help recover lost funds and information.

What are the different types of fraud?

Financial fraud is the largest section of all crime and accounts for 40% of all crime. Some of the most common types of scams that may involve artificial technology include:

Investment fraud

AI can be used to mimic celebrities and create celebrity endorsements for products or schemes that do not exist. Yet, to the public, the apparent endorsement enhances the trustworthiness of the scam and may attract victims into investing large sums of money. Recently, a video of Martin Lewis, the consumer finance expert, endorsing an investment scheme has been circulated by wrongdoers in an attempt to capitalise on Martin Lewis’s reputation. Martin Lewis repeatedly states that he does not endorse and products or organisations. It appears the scammers have taken advantage of Lewis’ large following to gain investments.

Find out more about artificial intelligence and the rise of investment fraud with our expert article here.

If you believe you may have been a victim of financial fraud, our lawyers are experienced in developing successful strategies to recover lost funds and other assets. With the right expertise and evidence, seeking legal advice is recommended to help recuperate the lost funds and obtain compensation.

Contact Giambrone & Partners today to speak to our financial experts.

Foreign exchange investment fraud

Foreign exchange (or Forex) scams have been circulated for a considerable time and are now increasing, and once money has been exchanged, it is hard to track the lost funds.

At Giambrone & Partners, we have a dedicated team of specialist Forex litigation lawyers with strong expertise in developing and managing fraudulent claims against sham brokers.

Find out more about our Forex trading scam litigation services here.

Romance fraud

Social media, and other types of platforms, are becoming increasingly prominent in modern society by individuals seeking a relationship. Romance frauds are equally becoming more common. This type of fraudulent behaviour preys on vulnerable people who believe they are in an online relationship. In reality, they are conversing with a scammer and increasingly a AI creation that gains the victim’s trust to extract money in fake investment scams.

Find out more about romance fraud and what to do if you have been targeted here.

With the rise of AI, many scammers are now utilising this technology to create convincing online profiles. Creating completely fake images, using a detailed prompt describing a person, or using AI to generate a realistic and inviting dating profile is fairly straightforward.

How can you identify a fraud?

In most cases, fraudsters tend to follow similar approaches when extracting money or private information from their victims. Many attempt to impersonate an organisation, such as a bank, or other organisation that their victim deals with to obtain details that will enable them to access their victim’s money. Be aware that these institutions will never ask for your PIN code, threaten arrest for not paying a fee, or request remote access to your devices.

Common things to look out for include:

• If it seems “too good to be true”

• If you are asked to transfer money to someone you’ve never met, such as in romance fraud.

• If the investment opportunity is said to have a short time limit or you feel pressured to act

• If you have been contacted abruptly and without warning

• If you have been asked for your personal details

For more information on how to identify potential fraud, read our article here.

Looking out for AI scams

When it comes to scams that utilise AI, many poeple do not believe they would be able to spot an AI scam:

Do you think you would be able to identify a scam that has used AI technology?

To identify images or deep-fake videos created by artificial intelligence, a close may reveal imperfections that initially you did not notice. This includes skin that appears too smooth, and poor rendering of human hands. However, be aware that AI’s machine learning means that it improves exponentially over time.

However, it is much harder to determine artificial intelligence techniques with regard to text. AI can be used to replicate the tone of organisations or individuals to help assert authority, gaining trustworthiness from their victims and creating believable text.

What should you do if you fall for a scam?

If you believe you have been a victim of a financial scam, do not feel embarrassed. Often, fraudulent behaviour is not reported as many people are reluctant to admit that they were drawn into a scam, which the fraudsters are fully aware of and take advantage of.

In the event of fraud, you should contact your bank or card provider to report the incident as soon as possible. They will be able to monitor any future activity on your account and prevent the fraudster from accessing your account in the future and taking more money. In some instances, you should freeze your card to protect your account. Make sure you know where you can report a stolen card and highlight any fraudulent transactions.

In addition, seek legal advice to discuss your further options and establish how you may be able to claim compensation.

Frauds and scams have been operating for many years. When asked, only 23% of the respondents were confident they would know what to do if they fell for an AI scam.

Would you know what to do if you fell for an AI scam?

This results in 77% of respondents being unsure what they should do in such a situation. It is recommended to seek specialist advice from legal experts with an understanding of this particular crime.

Why should you instruct lawyers after being victim to fraud?

After losing money to fraudsters, it is important to remember that these individuals are experts at what they do, and have considerable experience in taking advantage of the people. In order to have any possibility of recovering your losses, regardless of the type of fraud you have been subjected to, it is advisable to seek legal advice as soon as possible.

A legal advisor will be able to help guide you through this stressful period, and provide you with your next steps.

When asked, 75% of respondents would look for a lawyer that has a good track record in recovering money:

What would you look for in a lawyer?

45% of respondents seek legal assistance from lawyers who have recent successful cases, and 23% prefer lawyers who have previously commented on fraud.

Giambrone & Partners has a dedicated team of specialist lawyers who have considerable experience in retrieving large sums lost due to scams. They have led the way through the courts in England and Wales by persuading the judges to enable service of legal documents directly to the fraudsters by electronic means. Our financial fraud department monitors trends, including the rise of artificial technology, adapting our practices to develop new strategies for the process of obtaining lost funds.

In 2023, our head of banking and financial fraud litigation, Joanna Bailey, appeared on both ITV and Sky News to discuss romance fraud and the effect artificial intelligence has had on scams.

We can help you or your business uncover funds lost due to fraudulent behaviour. Our extensive experience in this field allows us to provide bespoke assistance depending on your specific circumstances.

If you or somebody that you know has been victim to a scam, arrange an appointment with Giambrone & Partners to discuss your options.